Altech Batteries attracts strong market interest in CERENERGY battery project funding
Altech Batteries (ASX: ATC) has received strong market interest in funding its unique CERENERGY sodium-chloride solid-state battery project.
The strategy now includes the potential to divest a minority interest in the project to one or two strategic investors.
The company appointed a major professional services firm In June this year to assist in securing finance for the construction of the 120 megawatt-hour (MWh) battery manufacturing plant in Saxony, Germany.
‘Complex process’
Chief executive officer Iggy Tan said the funding agreements are vital for advancing the financing and construction timelines for the CERENERGY project.
“The funding stage of any project is the most complex and challenging process,” Mr Tan said.
“Securing a ‘Big 4’ funding adviser with expertise and a global network is a major step in our financing efforts.”
“Altech is advancing both debt and equity discussions, along with offtake agreements, to fully fund the CERENERGY project [and] we are seeing strong interest, especially from European banks and potential equity partners.”
Strategic partners
The proposed partial divestment is targeting investors who can bring not only capital but also strategic value to the project, aligning with the CERENERGY project’s long-term growth and sustainability objectives.
The move is expected to attract large utility groups, data centre operators, investment funds and corporations that are heavily involved in the green energy transition.
The evolving CERENERGY financing strategy is structured across three key areas: debt, equity and grants.
These sources will cover not only the capital expenditures but also financing costs, working capital, debt service coverage and an additional contingency for potential business interruptions.
Invitation document
A finalised funding invitation document has now been distributed to various financial institutions for debt funding of the project.
The funding advisement group has engaged ten commercial banks and two venture debt funds in a first market round, receiving predominantly positive initial feedback, with several already expressing strong interest and a number of non-disclosure agreements signed.
The group is now in the process of shortlisting potential lenders to identify the most suitable financial partners for the project.
A secure data room has been set up to support a thorough due diligence process, providing detailed project information to interested financiers and ensuring full transparency.
Offtake arrangement
Altech announced in mid-September the execution of an offtake letter of intent with Zweckverband Industriepark Schwarze Pumpe (ZISP) for the sale of 30MWh of energy storage capacity annually, consisting of 1MWh GridPacks, for the first five years of production.
The price of these batteries has been agreed upon and aligns with the sales price contained within Altech’s definitive feasibility study, with the purchase still subject to certain conditions being met.
The ZISP offtake agreement is considered an important aspect of the financing process and lays the foundation for additional discussions currently in progress.